| The steps one follows during the home financing | | | | certain amount of time to close. You can lock a |
| portion of obtaining a mortgage are very | | | | rate for 15 days, 30 days, 60 days, and in some |
| important. This is a short explanation of the | | | | cases 90 days. Once you have locked the rate, |
| mortgage process and the steps one should take | | | | you are guaranteed that the rate will not |
| in order to guarantee a smooth transaction There | | | | fluctuate. You also have the option to float the |
| are several steps to take in the mortgage | | | | rate. If you float the rate and the rate goes |
| process. The following is a list of the best steps | | | | down you could then lock at a lower rate. If the |
| to take in order to ensure a smooth and simple | | | | rate goes up you would be subject to a higher |
| transaction. | | | | payment. It is always suggested that you lock the |
| 1. Get Pre-Approved FirstDuring the pre-approval | | | | rate due to the volatility of interest rates. You |
| process all the information necessary to complete | | | | may ultimately have to pay a higher payment if |
| a mortgage transaction will be collected. A | | | | you decide not to lock your rate and rates |
| pre-approval is substantially different from a | | | | increase. |
| pre-qualification. A pre-approval is the process of | | | | 5. Get a Professional Home InspectionIt is always |
| actually getting approved for a mortgage without | | | | wise to have a home inspection done. A home |
| having an actual property picked out yet. Having a | | | | inspection is done by an independent home |
| pre-approval helps substantially and will also help in | | | | inspector. A home inspection involves the home |
| negotiating with a seller. After all, a pre-approval | | | | inspector going through the home prior to |
| tells the seller that your offer is already approved | | | | purchase. In some cases a house that looks |
| and informs them that you are ready to move | | | | beautiful from the outside may have some |
| forward with the purchase. | | | | underlying issues that may be unseen. It is |
| 2. Making Verbal AgreementsThere is simply no | | | | important to know ahead of time if there are any |
| such thing as a verbal agreement in Real Estate. | | | | issues with the property. A home inspector will |
| If there is something that you would like the seller | | | | make sure all of the outlets work, that there is |
| to agree to, make sure they agree in writing. If | | | | no water damage, and that all of the appliances |
| there is a verbal agreement made, there is no | | | | work. They will assess all of the homes |
| feasible way to prove that that agreement was | | | | mechanical systems and make sure everything is |
| made. On the sales contract make sure | | | | in working order. They will also let the home |
| everything that you are requesting is either | | | | buyer know of any current issues or any items |
| agreed to or denied. | | | | that could become issues. |
| 3. Find Your New HomeNow, with your | | | | 6. Close on Your New HomeGet a copy of all of |
| pre-approval letter in hand it is time to search for | | | | the loan documents prior to closing. It is important |
| your new home-to-be. Look at several properties, | | | | to be able to read through all of the documents |
| even if the first one you see seems as though it | | | | as time may be limited during the closing. Always |
| may be, "The one." Once you have chosen your | | | | call your broker ahead of time with any questions. |
| new home write a sales contract and give a | | | | Never close on a property without having ample |
| deposit. Then forward the sales contract to your | | | | time to review the closing documents. After |
| broker to accompany the rest of the | | | | reviewing all of the documents set up a closing |
| documentation you have provided. Due to the | | | | with the seller and your attorney. At the closing |
| fact that you already have a pre-approval the | | | | table make sure you have all the required checks |
| loan process should be relatively quick. | | | | and documentation. You should receive a checklist |
| 4. Lock in Your RateIt is important to notify the | | | | prior to closing. Remember, never sign anything |
| mortgage company that you would like to lock in | | | | you do not understand, and ask plenty of |
| your rate. Once a rate is locked you have a | | | | questions to make sure you understand. |